Indonesian stocks face further outflows as MSCI proposes reclassifying the country from emerging market to a standalone market, a move analysts warn will add pressure to an already battered market. The nation’s equity index has tumbled more than 30% this year, making it the world’s worst performer. Foreign funds have sold a net $4.9 billion of Indonesian stocks in 2024, according to Bloomberg data. Market participants—including PT Kiwoom Sekuritas Indonesia’s Liza Camelia Suryanata, Bank of Nassau 1982’s Win Thin, CMC Markets’ Eugene Koh, PT BCA Sekuritas’ Felix Darmawan and Robeco Singapore’s Philip Mc Nicholas—expressed concerns over the potential downgrade and its impact on investor confidence. The MSCI decision reflects Indonesia’s deteriorating fundamentals amid global risk‑off sentiment.
MSCI Inc., $4.9B, 30% decline, Liza Camelia Suryanata, Win Thin
Source: Bloomberg Markets · Summarized by HeadlinesBriefing